a development plan for industrial start-ups

The start-up country and the reindustrialization of France may have found their combo: the French Fab 40. By looking at the forgotten parts of the system, “industrial start-ups”, a report of the General Inspectorate of Finance and the General Council for the Economy, submitted on September 1 to the Secretary of State for Digital Cédric O and to the Minister The Delegate for Industry, Agnès Pannier-Runacher, makes 13 proposals for “build new factories in France and create thousands of jobs”.

According to a report by consulting firm Roland Berger, the 15 major industrial start-ups could create 3,000 jobs by 2025 and up to 10,000 by 2030, mainly in the regions (62% of these companies ’headquarters is located outside France). ‘Ile-de-France).

The result
The report is based on the observation that innovation support policies and French Tech do not communicate with each other, so industrial start-ups are the system’s poor relationship. He estimates their number at about 1,500, or 12% of companies under 15 years old and less than 500 employees.

What kind of companies are we talking about? Companies that exploit patents, have a strong R&D component, and collaborate with research organizations, such as Ynsect and Innovafeed (breeding insects for animal feed), Ledger (physical wallet of cryptocurrencies), Aledia (LED screens), Afyren (organic acids), Treefrog Therapeutics (medicines and health technologies), or DNA Script (equipment for DNA synthesis), and many companies operating in biotechnology, health, robotics or even energy.

Once they have reached the stage of industrialization, they no longer benefit from the necessary assistance, financing and public support (venture capital, incubators, fablabs, etc.). The risk is that they then turn to subcontracting for manufacturing, or that they sell their technology.

The goal
The goal is to achieve the construction of 70 to 100 new industrial areas per year by 2025 to be a lever for the re-industrialization of territories and the creation of jobs, essentially by finding “patient capital” to fund industrialization and scaling up.

“The priority is to strengthen the supply of equity for financing industrial demonstrators and early factories”the report says, which assesses financing needs at between 5 and 30 million euros for demonstrators, and 20 to 150 million euros for or for the first factories.

The report proposes the creation of an “industrial reconquest fund” that brings together funds from large companies (corporate ventures) and ETI and State funding, through the 4th future investment program and Bpifrance, which will mobilize 100 million euro. It also recommends the renewal of the Industrial Project Companies (SPI) fund, in the amount of 700 million to 1 billion euros, and the creation of “industrialization loans” in the average amount of 2 million euros, for a total envelope of 200 million euros between 2022 and 2024.

Support for local establishment is the subject of another series of recommendations, involving in particular France Experimentation, a system initiated by the Interministerial Directorate for Public Transformation (DITP) and the Directorate General for Enterprises (DGE).

Finally, the report provides a section of proposals to offer support for industrial start-ups, whose managers are often researchers and engineers with no experience in creating an industrial site. The idea is to see each year, from the R&D stage, 300 to 400 start-up projects that are likely to go into production in France, and label and support 40 of them each year, by creating the “French Fab 40 on the French Tech 120 model”. “In the 2021 promotion of French Tech Next 40/120, industrial start-ups represent the dominant sector”Cédric O recalled when the report was delivered.

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